Pet Food Market - Trends, Industry Competitiveness and Future Outlook

PET FOOD MARKET

The pet food market was once valued at USD 74.9 billion in 2016. North America accounted for the largest share of over 35% of the world market in 2016. The second biggest market is Europe, observed by Asia-Pacific with round 20% of the market share, thus, accelerating the style of pet owners across the globe. In North America, the United States holds the fundamental market share of pets and pet owners, which is predicted to register a excessive CAGR, at some stage in 2017-2022 (the forecast period).

TASTES FOR NEW EXPERIENCES AND PORTIONS AS INDULGENCE ALIBI

Flavors and textures are turning into bolder, greater complex, authentic, and specific. The correlation of pet food and the cutting-edge codecs blending freeze-dried bits, with kibble or treats, for texture variations, is making pet owners pick out from a range of variety of shapes, textures, and flavors. Moreover, easy labeling continues to grow. Health mindful shoppers seem to be for permissible indulgences, like the smaller portion sizes of treats or goodies with more healthy substances like chia seeds or yogurt. Pet treats are developing, in terms of components with practical or other nutritional benefits, which is permitting pet proprietors to indulge their pets free from guilt. New canine meals products comprised of 80% of the global launches in 2015. The launches from September 2015 to September 2016, are preserving the health-related fashion intact in new products through category. The share for cat food was once round 68% globally. This trend of health and well being has made suitable income for the manufacturers. A few instances in this context are Hill's Ideal Balance, a new range of canine and cat meals that combines natural substances with Hill's perfectly balanced nutrition, is now available in South Africa. CORE® RawRev, a new high-protein grain-free product, is launched through Wellness CORE®, a family of grain-free, natural animal vitamin company.

IMPROVEMENT IN DISTRIBUTION NETWORK LEADS TO GROWTH IN PET FOOD SALES

The excessive web connectivity accessible in the fundamental international locations is boosting the use on e-commerce websites as an fine distribution channel. The notions of convenience, affluence or exclusivity, safety, and market recognition play a very integral function in the creating nations. The unreliability of nearby goods, as indicated with the aid of the latest scandals, is also making humans depend on foreign goods. These are made effortlessly accessible through the e-commerce, further making the income high. Owing to the industry's two pet superstores, PetSmart and Petco, the e-commerce channel is exploding with the pet product sales. The late include of the market connectivity in the minor markets of small economies, such as Vietnam, Thailand etc., is a motive of infrastructure lag and nearly negligible product awareness. These shops offer the nascent market blessings of low policies and competition. The companies, as the e-commerce is strengthening, are negotiating the ever-changing web panorama with the factors such as dealing with giants like Amazon that is identifying to sell through similar e-commerce web sites and mergers & acquisitions. For instance, in April 2017, PetSmart introduced that it will gather Chewy.com, which heightened the consternation in the impartial pet retailers. In response, Tuffy's Pet Food, a manufacturer to impartial and family-owned businesses, announced pulling out its merchandise from Chewy, as it would be owned by means of the largest US pet store chain. Though Tuffy's reports a very tremendous response, no longer every organization detaches itself effortlessly from any large e-commerce sites.

"FREE FROM ALL" AND "FLEXITARIAN EFFECT" BOTH HAVING THEIR WAY TOGETHER

Though the customers nowadays are part-time vegetarians, they seem to do the opposite when it comes to pet food. The pet owners seem for weight loss plan options, which focal point on the carnivorous nature of dogs and cats, thus, using the range of merchandise with excessive and clean meat claims. Despite the demand for carnivorous diets, veggies are still going mainstream and the producers are innovating their present products. Free from" for all-the free from style has been growing, due to the fact the previous few years and has now hit the mainstream. Pet meals are being formulated with admire to the worries of humans that consist of organic and non-GMO ingredients. These elements are used in low-carb recipes and have gluten-free claims on new cereal products that elevated from one in 15 in 2011 to one in 5 in 2016. New product launches, with natural or GMO-free ingredients, are witnessing increase in the market. Organic and herbal food income are predicted to amplify 14.6%, annually, in subsequent two years. For Petco and PetSmart, natural pet meals are sold at a 7.1% and 5.6% rate, respectively, with organic purchases at veterinary clinics at 5.3%. Brands speak greater about the production processes, due to the rising client activity in natural plus authenticity and transparency. This is proper for the buyers, too, especially, for the ones seeking merchandise in non-traditional formats such as raw, freeze-dried, frozen and baked. Balchem Corp., a international health, and nutrition company, brought a new line of distinctiveness vitamins and unique processing additives. The Omega Plus range used to be launched in the South Island in September 2016, after the two years of continuous R&D. In addition, Bob Martin launched Simply+, a vary of products marketed as "nutritionally advanced food that affords puppies with all the essentials of a wholesome diet".

CROSS-BORDER ZONE TO HELP MEET BUOYANT DEMAND

The domestic market is developing at an annual rate of above 30% in China and is poised to accelerate at the equal price with the aid of 2022, achieving CNY a hundred and fifty billion and further, making it the third-largest market, worldwide. Moreover, Hangzhou in Zhejiang Province inaugurated the first cross-border pet industry experimental area in the city's Jianggan District. The experimental sector will pilot the reforms on the law and approval of cross-border imports. It will discover the introduction of countrywide requirements in the enterprise and promote the exportation of domestically made products. Moreover, extra than 35 enterprises, such as the cross-border e-commerce websites like Tmall, Kaola Beibei, and related logistics & warehousing companies, have been set up in the experimental zone. The zone, basically, enables one-stop offerings and ambitions to sign up open, transparent, and clever pet meals import channels and regulatory policies. Similar efforts are being taken via the countries to focus on the developing pet population and trends. The market players are taking complete gain of this scenario and investing in R&D for progressive product launches.

NOTABLE MARKET DEVELOPMENTS

1. Nestlé Purina launched a new manufacturing corridor at its facility in Bük, in Hungary's northwest, making the plant the greatest production center in Europe and opened the USD 86 million factories in Brazil. This step is anticipated to increase the Nestlé Purina for extra growth than the domestic market.

2. Carna4: Formulas Inspired with the aid of Health Food Trends. This manufacturer takes idea from the human fitness food area to formulate innovative and whole-food recipes for puppies and cats.

3. PetLife Supersedes Expectations for the Acquisition of Dr. Geoff's Real Food for Pets. PetLife Pharmaceuticals, Inc., a developer of a new era of high efficiency veterinary cancer medicinal drugs and nutraceuticals for pets, announced that it is obtaining Dr. Geoff's Real Food for Pets™ and enlargement plans for a national rollout.

4. German Company Entering Thailand. Interquell, a German-based dog, and cat food company, entered the Thai enterprise by using forming a joint venture, named Happy Pet (Thailand) Co Ltd, with companion Technic Pet Holding, pronounced Pets International. Interquell holds 49% of the joint venture. Interquell owns the Happy Dog and Happy Cat top rate brands.

TOPICS COVERED IN THE REPORT

How will face-to-face interplay increase the pet meals market in Digital Age?

Is low thiamine cat food the reason for Australian cat deaths?

Gluten free foods, GMO foods making their mark in the pet meals industry.

Edible insects creeping into pet food popularity.

Humanization and premiumisation on peaks in the pet industry.

Will the US and China continue their dominance in the pet food market? What are the emerging markets?

Will growing market connectivity in Asian international locations of Vietnam, Thailand etc. raise the Asia-Pacific pet meals market